Look for auto sales to grow this year

The National Automobile Dealers Association expects several factors to boost auto sales this year.

“Modest economic growth and declining gasoline prices, low interest rates, more leasing options and aging vehicles that need to be replaced will likely result in higher auto sales over the next several months, ” said Paul Taylor, NADA’s chief economist .

The National Automobile Dealers Association expects several factors to boost auto sales this year.

"Modest economic growth and declining gasoline prices, low interest rates, more leasing options and aging vehicles that need to be replaced will likely result in higher auto sales over the next several months," said Paul Taylor, NADA's chief economist.

Taylor predicts that U.S. new-car and light-truck sales will increase by more than 10 percent in 2012 as the new-vehicle supply increases.

Taylor added that May's sales results will indicate where the auto industry is headed for the rest of the year. Automakers reported mixed results in April, he said.

Another factor expected to boost new-car sales is higher than average trade-in values on used vehicles, said Taylor. According to the NADA Used Car Guide, used-car prices continued to rise in recent months, which have increased the trade-in values for consumers shopping for another vehicle, he said.

Author: Steve Tarter

Born in England, raised in Boston, I'm a Midwestern transplant who's called Peoria home for the past 40 years. Married with four grown children, I enjoy journalism, film noir and radio drama. As the song goes, I like coffee; I like tea. Former president of the Apollo Theater in Downtown Peoria, I'm looking for a new raison d'etre.
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